INCONTESTABLE POLICY Meaning and
Definition
-
An incontestable policy is a term used in the field of insurance to describe a type of policy that cannot be disputed or challenged by insurance companies or policyholders after a certain period of time. This provision is typically included in life insurance policies and is intended to provide a level of certainty and stability for beneficiaries and policyholders.
The incontestability clause is typically triggered after a specific period, often two years, from the date the policy was purchased. Once this time has elapsed, the insurance company is legally bound to honor the policy and pay out the benefits as stated, regardless of any misrepresentation or hidden information that may have been present during the application process. This means that the policyholder's beneficiaries are guaranteed to receive the agreed-upon benefits upon the insured individual's death, as long as the premiums have been paid.
The purpose of the incontestability provision is to protect policyholders from potential unfair denial of claims by the insurance company. Without this feature, insurance companies could potentially avoid paying claims based on minor inaccuracies or omissions made by policyholders during the application process.
It is important for policyholders to understand that the incontestability provision does not provide immunity for fraudulent activities or intentional misrepresentations on the part of the policyholder. If it is proven that the policyholder deliberately provided false information, the insurance company retains the right to deny the claim and potentially take legal action.
Overall, an incontestable policy offers peace of mind and financial security for policyholders and their beneficiaries by ensuring that the policy's benefits will be paid out, even if inaccuracies or omissions are discovered after the contestable period has expired.
-
One payable on death after a specified time, no matter whether the insured observes the conditions of travel, hazardous occupation, etc., or not.
A practical medical dictionary. By Stedman, Thomas Lathrop. Published 1920.
Common Misspellings for INCONTESTABLE POLICY
- inncontestablepolicy
- i ncontestable policy
- in contestable policy
- inc ontestable policy
- inco ntestable policy
- incon testable policy
- incont estable policy
- inconte stable policy
- incontes table policy
- incontest able policy
- incontesta ble policy
- incontestab le policy
- incontestabl e policy
- incontestable po licy
- incontestable pol icy
- incontestable poli cy
- incontestable polic y
Etymology of INCONTESTABLE POLICY
The etymology of the word "incontestable policy" can be understood by examining the origins of its constituent terms:
1. Incontestable:
The word "incontestable" is derived from the Latin term "incontestabilis". It is formed by combining the prefix "in-" (meaning "not" or "without") and "contestabilis" (meaning "contestable" or "debatable"). Over time, this Latin term has passed through French and English, retaining the same meaning of something that cannot be disputed or contested.
2. Policy:
The word "policy" originates from the Latin term "polītica" or "polītica res", which refers to "political affairs" or "civil administration". It is directly borrowed into Middle English from Old French "police".
